Wednesday, December 12, 2012

Mozambique holds rate, confident inflation hits target

    Mozambique's central bank held its benchmark interest rates unchanged, saying it was confident that inflation would meet the central bank's 5.6 percent target for 2012.
    The Bank of Mozambique (CPMO), which has cut the rate on its standing lending facility six times this year for total reduction of 550 basis points, said it would maintain this rate at 9.50 percent along with the standing deposit facility rate at 2.25 percent.
    It would also continue to intervene in the interbank market to ensure that the monetary base expands to a maximum 40.5 billion meticais by the end of December.
    The central bank said Mozambique's inflation rate accelerated to 2.94 percent in November from October's 2.33 percent, reflecting worsening price levels in the three main cities.
    Provisional data showed that the monetary base would reach 38.39 billion meticais at the end of November, an increase of 11.9 percent from December 2011.
    Mozambique's Gross Domestic Product rose 0.4 percent in the second quarter from the first quarter for annual growth of 8 percent, up from 6.3 percent.
 
    www.CentralBankNews.info

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